USD/JPY: The Yen has Grown Due to the Collapse in the Meeting in Doha
During today’s Asian session the Yen has traded upward against the other currencies due to the negative result of the meeting in Doha. The pair USD/JPY started the day with the gap down by 50 points against the closing price last Friday.
Since the beginning of European session the pair USD/JPY has regained part of the losses. Pressure on the pair continues, as the failure of the agreement to freeze oil production has forced investors in invest money in the Yen, as it is a safe-haven currency.
Nevertheless, be careful when opening short positions on the pair USD/JPY, as Japanese government closely watches currency markets and may take measures if the Yen will continue to rise further.
Last Friday Japanese Finance Minister Taro Aso said that “necessary” measure can be taken to stop the rise in the Yen. For this purpose, consumption tax can be raised to 10% from 8%
In the beginning of last week, Finance Minister of Japan Taro Aso said that the leading economies in the world find it acceptable to introduce measures against “one-sided speculative currency fluctuations, having in view the possibility of banks’ interventions to the currency markets, including the Bank of Japan.
Economic calendar is uneventful today. This week traders will focus attention on the interest rate decision by ECB (Thursday, 13:45 GMT+2) and the press-conference of ECB. This data will affect financial market including the pair USD/JPY.